6. 4
Australia produces
4% of the world’s beef
supply, with a value
of $9.04 billion.
Photo by Sally Edwards.
7. PRESIDENT’S
FOREWORD
5
PRESIDENT’S
FOREWORD
Cattle Council of Australia is the peak industry body responsible for
representing and advancing the interests of Australia’s grassfed beef
producers to Government and industry stakeholders.
The development of the ‘Beef Industry Strategic Plan 2020’ (BISP2020) is a key responsibility for the Council,
and provides the framework for defining and focusing the industry’s resources on the areas that will generate the
highest benefits. BISP2020 will help direct resources of both the Council and the organisations that deliver industry-
funded programs: Meat and Livestock Australia (MLA), Animal Health Australia (AHA), and the National Residue
Service (NRS).
The new strategy has been developed from consultation with grassfed levy payers and other key industry
stakeholders across Australia. It is backed by rigorous economic modelling and analysis and represents the beef
industry’s response to the wider Meat Industry Strategic Plan (MISP2020).
Producers across the country want Australian beef value chains to be the trusted first choice globally for quality beef
products and livestock. To help us get there, BISP2020 lays out a vision to refocus industry efforts and resources
to strengthen Australia’s competitive position as a trusted source of premium quality and sustainable products
underpinned by world class systems.
As we look to 2020 and beyond, the long-term fundamentals for the beef industry are positive. However, the
stakes are high for producers and other value chain businesses facing rising costs and increasing domestic and
international competition – we cannot continue business as usual.
For me, the strong move towards value chain thinking highlighted in BISP2020 is the key to our industry’s future.
It means incorporating the needs of consumers at every step from the dinner plate through to the farm gate. It will
help increase transparency along the value chain, bring greater opportunities for producers to gain premiums and
foster the collaboration we know is needed to drive our industry forward.
CCA has developed a strategy that is objective, robust and represents the future goals of Australian cattle
producers. I am especially pleased to see four areas identified as Top Priority, as it helps everyone focus their efforts
on where the biggest gains are to be made.
The success of the strategy now depends on strong leadership and collaboration across the value chain to ensure
implementation. It is up to us as the producer peak body to lead by example in changing our own business model,
engaging with producers and working with other peak bodies and service organisations to deliver the strategy. We
are committed to playing a leading role in making BISP2020 a success.
Howard Smith
CCA President and
Beef producer from Rolleston, Central Queensland
9. HOW BISP2020
IS STRUCTURED
7
HOW BISP2020
IS STRUCTURED
The Strategy Overview section provides the context for BISP2020, with the same five key investment pillars as
identified in MISP2020. Each pillar includes the strategic intent for the beef industry, along with an indication of
what success may look like in 2020.
The process to develop BISP2020 identified many important activities that will contribute to the industry’s success.
However, the industry has finite resources and it is critical that efforts are concentrated on those areas that are
expected to bring the largest benefits. The intent is for BISP2020 to provide direction on these priorities.
Economic analysis revealed 10 priority areas that link back to the investment pillars identified in MISP2020 and the
strategic intent identified for the beef industry. Economic modelling shows that these priority areas have different
expected benefits to the industry by 2020. Therefore, they are ranked as Top, High and Medium priorities, reflecting
both the extent of change that is required between now and 2020 and where industry investment could have the
greatest impact by 2020.
TOP
PRIORITY
HIGH
PRIORITY
MEDIUM
PRIORITY
These investment areas are
where the greatest industry
effort, resources or changed
approach need to be applied
to benefit the industry by
2020 and beyond.
These investment areas
underpin the strength and
resilience of the industry.
They involve refining,
improving and in some cases
escalating industry effort to
create more value by 2020
and beyond.
These investment areas are
important to industry success,
with the emphasis being on
continuous improvement
through to 2020 and beyond.
Most priority areas do not simply fit within one of the five key investment pillars. Instead, there are many links and
interdependencies across what is a very large and complex system.
For example, animal health initiatives help to engender community and consumer support and underpin our
market access. They also support product brands for market growth and diversification and can improve on-
farm productivity and profitability. Similarly, the stewardship of our environmental resources is vital for community
support, the long-term productivity and profitability of our land and an important attribute to help differentiate
Australian beef products in high value markets around the world.
The main implication is that no single activity area works in isolation and achieving a breakthrough will require
a deliberate, sustained emphasis on performance and results for the Top, High and Medium priority activities. In
particular, a lack of progress with the Top Priorities by 2020 will reflect poorly on the performance of all parties
responsible for strategy implementation.
Given the very significant changes required and the long lead time of R&D, there is much value in looking beyond
2020. The value of BISP2020 and the industry initiatives and actions that follow extend well beyond the term of this
plan. As such, the economic modelling conducted includes estimates of the benefits to the industry through to
2030 (see Appendix) for the priorities and actions in the new strategy.
10. BEEF INDUSTRY
STRATEGIC PLAN 2020
8
STRATEGY
OVERVIEW
A bright future lies ahead but success is not assured.
We cannot continue with business as usual and will need to
embrace change and innovation to take full advantage of the
opportunities in front of the industry.
BISP2020 provides an ambitious vision to refocus industry efforts and resources towards strengthening
Australia’s beef industries competitive position. It is designed to support a profitable and sustainable beef
value chain that maximises returns based on consistent quality and fit for purpose products that match
consumer expectations.
BISP2020 emphasises the need to implement significant changes that will help to maximise the value from
industry-funded services and re-position the industry for long-term profitability. Achieving these changes will
require strong leadership and a new level of collaboration across value chains. It will involve the peak industry
councils leading by example with adherence to clear roles and responsibilities by all parties.
Consultations and economic modelling undertaken for BISP2020 confirmed five primary investment areas
(‘pillars’) with imperatives for action in each (see Appendix for economic data). The analysis provides clear
direction on where the beef industry will need to prioritise investment of its limited resources to create the
greatest benefits for all value chain businesses.
Figure 1: Five Pillars of the Strategy
Leadership &
Collaboration
Market Growth &
Diversification
Value Chain
Efficiency &
Integrity
Productivity &
Profitability
Community
& Consumer
Support
11. STRATEGY
OVERVIEW
9
Industry Leadership
and Collaboration
STRATEGIC INTENT
To enable and accelerate collaboration along beef value
chains by developing industry leaders, strategic
relationships, skills and modern business models for
industry representation and service bodies.
Market Growth and
Diversification
STRATEGIC INTENT
Concentrate industry
marketing and trade access
services towards growing
markets and segments within
mature markets where there is a
capacity and willingness to pay
a premium for Australian beef
and create the environment for
commercial brands to flourish.
Community and
Consumer Support
STRATEGIC INTENT
Maintain and improve public
confidence and trust by
continually adapting industry
practices in line with changing
community expectations,
and raising public awareness
of what the beef industry is
doing and achieving.
Value Chain Efficiency
and Integrity
STRATEGIC INTENT
Accelerate the shift
towards the industry
competing on the basis of
responsive world class value
chains using robust systems
and characterised by payment
on objective measurement
of product performance by
participating businesses.
Productivity and
Profitability
STRATEGIC INTENT
Increase on-farm profitability
by accelerating the widespread
use of proven practices and
technologies for different
types of farming operations,
while improving value-based
signals for livestock produced
fit for purpose.
13. STRATEGY
OVERVIEW
11
Industry Leadership and Collaboration
STRATEGIC INTENT
To enable and accelerate collaboration along beef value chains by developing industry
leaders, strategic relationships, skills and modern business models for industry
representation and service bodies.
Success by 2020:
The rate of progress with developing industry leadership and value chain collaboration will be a leading indicator of
progress across all pillars of BISP2020. By 2020, there will be:
• More diverse and a greater number of skilled
leaders working together across the value chain
to implement targeted initiatives that make a real
difference to industry businesses
• A higher proportion of sales from collaborative value
chains meeting demand for premium quality beef
and beef products, with evidence of the benefits
being shared across the participating businesses
and value chain partners
• Industry representation and service bodies will be
more flexible, more focused on a few high priority
issues rather than spreading efforts thinly, more
accountable for their performance, have clear and
practiced roles and responsibilities and be more
valued by industry businesses and governments
• A new national cattle producer body will include the
majority of cattle businesses and production and
work seamlessly with other peak industry councils
across the value chain.
Community and Consumer Support
STRATEGIC INTENT
Maintain and improve public confidence and trust by continually adapting industry
practices in line with changing community expectations, and raising public a
wareness of what the beef industry is doing and achieving.
Success by 2020:
The beef industry will have:
• Maintained and improved customer, consumer and
community confidence and trust in its products and
its production practices
• Agreed animal welfare indicators in place and
monitored, with high levels of compliance and
performance across the value chain
• Evidence of improving performance against a
baseline for environmental and natural resource
management issues of priority to cattle producers
and the community
• A cattle herd that continues to have a demonstrably
high health status with robust disease surveillance
and response plans and capabilities in place
• Sustainable production practices that are an
integral part of the commercial value proposition
and narrative for premium quality Australian
beef products.
14. BEEF INDUSTRY
STRATEGIC PLAN 2020
12
Market Growth and Diversification
STRATEGIC INTENT
Concentrate industry marketing and trade access services towards growing markets and
segments within mature markets where there is a capacity and willingness to pay a premium
for Australian beef and create the environment for commercial brands to flourish.
Success by 2020:
• Beef exports to developing markets and growth
segments of developed markets are differentiated
from competitors to maximise returns and
attract premiums
• Trade and technical market access has been
maintained in all markets and improved in the highest
priority export markets, including implementation
of the Trans Pacific Partnership and negotiations for
a Free Trade Agreement between Australia and the
European Union
• Commercial brands are flourishing in developed
markets, enabling re-investment of industry
marketing and promotion services into emerging
growth markets
• Premiums are being paid by domestic consumers
for beef products relative to competing proteins, with
the benefits flowing to the farm gate.
Productivity and Profitability
STRATEGIC INTENT
Increase on-farm profitability by accelerating the widespread use of proven practices and
technologies for different types of farming operations, while improving value-based signals
for livestock produced fit for purpose.
Success by 2020:
• Widespread application of existing R&D knowledge
and know-how of high value to different segments of
farm enterprises is delivering measurable benefits at
the individual farm level
• Effective and efficient value-based marketing is
providing clear signals for more consistent quality
livestock being produced and more product sold as
fit for purpose
• An increased number of producers are aligned and
identify with branded beef product programs
• Productivity gains are concentrated in areas that
will improve efficiency and producer profitability for
different types of farm enterprises and are not driven
by a strategy of competing on a lowest cost basis.
15. STRATEGY
OVERVIEW
Value Chain Efficiency and Integrity
STRATEGIC INTENT
Accelerate the shift towards the industry competing on the basis of responsive world class
value chains using robust systems and characterised by payment on objective measurement
of product performance by participating businesses.
Success by 2020:
• A growing number of producers are receiving timely,
reliable signals from the value chain that reflect real
value differences for their cattle, based on objective
measures of preferred attributes
• An improved beef language specification that
aligns with end user requirements is agreed
and implemented
• Reliable information is flowing rapidly up and down
the value chain, with major industry and government
regulatory impediments having been identified
and removed
• Product integrity systems and information flows that
support and enable informed decision-making for all
businesses across the value chain will be more
linked, integrated and digitised.
Photo by Sally Edwards.
13
16. BEEF INDUSTRY
STRATEGIC PLAN 2020
INTRODUCTION
A valuable and diverse Australian industry
The Australian beef industry is vast and diverse,
covering 48% of Australia’s landmass and
includes more than 38,000 individual businesses
employing approximately 77,000 workers in cattle
farm enterprises.1,2
Australia is the world’s seventh largest beef producer
and the third largest beef exporter, with a gross value of
cattle and calf production estimated at $11.4 billion.3
In 2014-15, Australia exported 74% of its total beef
and veal production to 86 countries at a value of
approximately $9.04 billion.4
The direct contribution of beef and live cattle to gross
domestic product was approximately 1% in 2014-15.3
1 Tonkin, Brooke. 2015. ‘IBISWorld Industry Report A0142 Beef Cattle Farming in Australia’. IBISWorld
2 MISP2015
3 ABARES, Agricultural Commodities, September 2015
4 Latest available DAFF and ABS data - figures for fiscal year 2014-15
Cattle
14
17. INTRODUCTION
15
Figure 2: Australian beef and veal production 2014-15
2.7 million tonnes carcase weight (2014-15) Source: ABS
Victoria
19.3%
NSW
22.4%
WA
4.1%
SA
5.0%
Queensland
46.7%
Tasmania
2.5%
Figure 3: Australian Beef Exports 2014-15
1.3 million tonnes shipped weight (2014-15) Source: Department of Agriculture
USA
34.9
other
9.1
Taiwan
2.3
Canada
3.0
Indonesia
3.2
Middle East
4.1
China
9.3
Korea
11.6
Japan
22.5
18. BEEF INDUSTRY
STRATEGIC PLAN 2020
16
Opportunities and challenges ahead
Australia’s grassfed beef industry is at a critical juncture and faces significant opportunities and challenges.
It means that the priorities and direction set in BISP2020 take on great importance.
There is real potential for growth in export markets, with rising per capita income being closely aligned with strong
and growing demand for beef in our wider region.5
Australia’s geographical proximity to key markets, the extent of
our market access and reputation as a supplier of premium quality, safe and ethically-produced beef means we
are well-positioned.
Additionally, a competitive advantage from a strong US dollar, recently achieved trade agreements with China,
Japan and Korea and an influx of capital, together provide a positive outlook,6
with industry revenue forecast to
grow through to 2020.7
Despite these encouraging factors, there are risks and constraints too. In particular, widespread severe drought
has had a major impact on producer incomes, the national cattle herd and the short-term capacity of value chain
businesses to meet demand.
These issues, together with intense and increasing competition from other proteins and from overseas beef
exporters, all create uncertainty about the future.
Developing the BISP2020
The development of the grassfed Beef Industry Strategic Plan, BISP 2020, provides a unique opportunity to
reflect on where our industry is now, where we want to be in the future and how best to get there. It provides
a framework for defining and focusing the priorities of the sector and assists in directing and mobilising the
appropriate resources.
Importantly, BISP2020 is the grassfed beef industry’s response to MISP2020 and not intended to simply mirror all
the activities and actions listed for the red meat industry.
Beef producers reasonably expect the new strategy to be objective, accountable, straightforward and broadly
reflective of the needs and values of modern Australian beef producers, businesses and their communities.
The development of BISP2020 has responded to these messages and placed a high priority on producing a
balanced strategy that cattle producers have had a hand in preparing.
5 Gidley-Baird, Angus. 2015. ‘Australian Beef: On the Cusp of Great Things’. Rabobank Industry Note #504
6 Gidley-Baird, Angus. 2015. ‘Australian Beef: On the Cusp of Great Things’. Rabobank Industry Note #504
7 Tonkin, Brooke. 2015. ‘IBISWorld Industry Report A0142 Beef Cattle Farming in Australia’. IBISWorld.
19. INTRODUCTION
17
The development of BISP2020 follows the release of the
Meat Industry Strategic Plan 2015-2020 (MISP 2020) in
September, 2015. Over 550 industry and community leaders,
levy payers, co-investors and service providers were engaged at
consultations and 20 workshops around the country. On top of this,
MISP 2020 incorporated thorough economic modelling that brings
a level of objectivity and increased rigor to the strategy
BISP2020 has sought to fully leverage the extensive work of MISP 2020 by adopting a similar structure, extending
the analysis and consultation and concentrating on those areas that represent the highest potential benefit for beef
industry businesses.
Developing BISP2020 involved extensive desktop research, two workshops (Canberra and Brisbane), online
feedback through discussion papers and the conduct of further, rigorous independent economic analysis.
BISP2020 is objective, robust and integrates the findings, analysis and insights from stakeholders on the future
goals of beef enterprises.
Responsibilities and accountabilities for
ensuring implementation
BISP2020 sets an agreed direction and priorities, but benefits can only flow to cattle producers and other value
chain businesses if it is implemented. The various meat industry bodies each have responsibilities, roles and
accountabilities for ensuring the new plan implementation.
Improved collaboration and purposeful effort by the peak industry councils from across the beef value chain will be
pivotal in creating the necessary momentum and urgency for change. Policies and early action by peak councils
such as the Cattle Council of Australia will create the opportunity that enables the industry service providers to
achieve the changes planned in the strategy.
BISP2020 will help to direct the efforts and resources of the Cattle Council of Australia and the industry service
bodies: Meat and Livestock Australia (MLA), Animal Health Australia (AHA), and the National Residue Service (NRS).
20. BEEF INDUSTRY
STRATEGIC PLAN 2020
18
PRIORITIES
FOR ACTION
BISP2020 identifies and ranks 10 priority areas of activity for industry to pursue. The activities are ranked
as Top, High or Medium Priorities, reflecting the extent of change that is required between now and 2020
and providing guidance on where industry investment could have the greatest impact as indicated by
economic analysis.
Figure 4: Economic Modelling:
Priority areas and the estimated net benefit to industry income by 2020 *
MarketandpromoteAustralian
beef-exportmarkets
Welfareofanimals
withinourcare
Optimisingproductquality
andcostefficiency
Guaranteeingproduct
andsystemsintegrity
Productionefficiency
onfarms
Efficiencyandvalueintrade
andmaeketaccess
Stewardshipof
environmentalresources
MarketandpromoteAustralian
beef-domesticmarkets
Redmeatina
healthydiet
600
500
400
300
200
100
0
Estimatedbenefittoindustrynetincomeby2020($MIL)
Top Priorities High Priorities Medium Priorities
* Building Industry Capability priority was not modelled
21. PRIORITIES
FOR ACTION
19
The following sections describe the Top, High and Medium Priorities and list the related imperatives as identified
in MISP2020. In many cases, the overall ranking of a priority area is due to the large expected benefits of just one
imperative (see Appendix).
Each imperative and the accompanying actions are placed in order of descending importance, with the Key
Performance Indicators (KPIs) and main organisations responsible for implementation.
The intent is for BISP2020 to provide direction for the various parties responsible for strategy implementation. All
activities link back to the five key investment pillars identified in MISP2020 and the strategic intent identified for the
beef industry.
PRIORITIES
PILLARS TOP HIGH MEDIUM
Leadership &
Collaboration
Building industry
capability
Consumer &
Community Support
Welfare of animals
within our care
Stewardship of
environmental
resources
Red meat in a
healthy diet
Market Growth &
Diversification
Market and promote
Australian beef –
export markets
Efficiency and
value in trade and
market access
Market and promote
Australian beef –
domestic market
Value Chain
Efficiency & Integrity
Optimising product
quality and
cost efficiency
Guaranteeing product
and systems integrity
Productivity &
Profitability
Production efficiency
on-farm
22. BEEF INDUSTRY
STRATEGIC PLAN 2020
20
1. Top Priorities
The following priorities, imperatives and activities are areas where the greatest
industry effort, resources or changed approach need to be applied to maximise
industry benefits by 2020.
1.1 Building Industry Capability
The Australian beef industry is large and complex. While the complexity of the industry can’t be reduced, the
industry can invest to develop a diversity of talented leaders with the ability to deal with complexity and lead
transformational change within and across businesses and the various industry service bodies.
Investing in people is important, but industry institutions such as representation and service bodies must also
innovate and evolve to become more effective, efficient and valued by beef industry businesses.
In particular, the peak industry councils will need to play a much stronger role in leading the changes required for
more collaboration across value chains. For the national cattle producer representative body, it will mean creating a
new business model that cattle producers want to be part of, and working cooperatively with other peak councils to
find solutions and create momentum for efficient implementation.
Imperative: Developing skills and leaders to support the industry
Activities Key Performance Indicators Who
• Strategic investment
to support improved
leadership development
and governance training
at a variety of levels across
the beef value chain
• Evidence of increased stakeholder confidence with the
leadership of industry councils, boards and committees
compared with a 2016 base line.
• Evidence of annual increases in the number of
participants drawn from across the whole value chain in
industry leadership development programs.
CCA
MLA
• Provide a variety of
development and career
pathways for a diversity
of leaders
• More people are competing for industry leadership
positions each year, compared with 2015.
• Annual increases in the diversity of people sitting on
industry boards and committees, including a greater
representation of women.
CCA
MLA, CCA
23. PRIORITIES
FOR ACTION
21
Imperative: Sustainable and valued industry structures and programs
Activities Key Performance Indicators Who
• Develop world
class business
models for industry
representative bodies
that satisfy the service
demand of value
chain businesses
• New national cattle producer representation body includes
the majority of cattle production and majority of businesses.
• Improved performance of all peak industry councils in the
beef value chain as independently measured using common
criteria in 2016 and 2020.
• Evidence of increasing levy payer satisfaction and
confidence with industry services against 2015 baseline.
CCA
Peak Industry
Councils
MLA
• Adapt joint industry-
government
programs to meet the
current and emerging
needs of levy payers
• Evidence of high and improving joint program
performance and value for money to producers against a
2016 benchmark.
MLA, CCA,
Australian
Government
1.2 Market and Promote Australian Beef – Exports
Marketing services are an area where investments by the industry can directly influence changes for the benefit of
industry businesses. Marketing and promoting Australian beef and beef products will involve the industry pursuing
a strategic and targeted approach to create demand in growing profitable markets and market segments for
premium quality Australian beef products.
The Top Priority ranking here is almost entirely due to the large expected benefits that come from marketing and
promotion in developing export markets - an expected benefit of $389 million to industry net income by 2020.
Significant benefits will also be generated from our developed export markets, while the benefits expected from the
Australian domestic market would be comparatively much lower.
Imperative: Marketing and promotion – export markets
Activities Key Performance Indicators Who
• Implement tailored
programs to stimulate
customer and
consumer demand
for Australian beef in
developing markets
• Independent evidence that industry export marketing
efforts in developing markets provide a return to livestock
producers of $6 for every dollar of expenditure.
• Evidence that importers, supermarkets and mid to high end
food service operators in developing export markets have
an increased awareness and understanding of MSA as an
indicator of eating quality underpinning beef brands.
MLA
• Identify segments
in developed export
markets that offer
substantial growth
potential for Australian
beef and implement
tailored programs
• Evidence that the trade (importers, retailers, and food
service operators) in high value developed export markets
is prepared to pay a price premium for Australian beef
based on perceptions of food safety, integrity and quality.
• Independent evidence that industry marketing efforts in
developed markets provide a return to livestock producers
of $3 for every dollar of expenditure.
MLA
24. BEEF INDUSTRY
STRATEGIC PLAN 2020
22
1.3 Welfare of Animals within Our Care
Consumer and community support for the beef industry and its products is fundamental to the future success of
all businesses in the beef value chain. The main challenge ahead is to maintain and improve the ‘social licence’ to
operate that the industry has already developed with the community.
Consumers are increasingly viewing food quality much more broadly than a product’s tangible eating quality
or dietary attributes. For example, consumer perceptions can encompass the level of sustainability, including
associated workplace practices, animal welfare, nutrition and the social and environmental impact of the industry’s
activities.
The Top Priority ranking here largely relates to the importance of mitigating the downside risks associated with
animal welfare issues. It is about investing to maintain and improve the alignment of industry husbandry and
stockmanship practices with changing community expectations.
Imperative: Continuous improvement of animal welfare
Activities Key Performance Indicators Who
• Develop, implement and monitor
continuous improvement in animal
welfare practices across the value chain
• Industry agreement reached on
indicators of on-farm animal welfare for
grassfed cattle production.
• Industry agreement reached to include
animal welfare and biosecurity modules
in the Livestock Production Assurance
Program, with implementation by 2020.
MLA, CCA
CCA,
Safemeat
• Gather evidence and prepare publically
accessible resources to communicate
what the beef industry is doing and
achieving with animal welfare
• Level of media, government and
community engagement with industry
on animal welfare through multiple
channels (e.g. Target 100 campaign).
MLA
• Monitor community and consumer
perceptions on animal welfare to
identify changes or emerging issues
• Community sentiment monitored and
activities implemented to mitigate any
shifts in perceptions and attitudes
towards industry.
MLA
• Develop and maintain an effective
capability to respond to emerging
animal welfare issues that could
influence community perceptions
• Response strategy in place with timely
and effective implementation as
issues arise.
MLA, CCA,
NFF
25. PRIORITIES
FOR ACTION
23
Imperative: Minimising the risk and impact of emergency disease
Activities Key Performance Indicators Who
• Maintain and improve active
surveillance of emergency disease
through the supply chain
• Evidence of high and ongoing confidence
levels of key stakeholders (government,
industry and trading partners) in the integrity
of emergency disease surveillance.
MLA, AHA
• Maintain and regularly test
systems and plans for emergency
disease outbreak
• Industry and government satisfaction with
outcomes of emergency plan testing.
CCA, AHA
• Ensure access to priority vaccines
and resources needed for
emergency disease response
• Funding and the support of industry and
government are maintained and improved.
CCA, AHA
• Maintain and regularly test NLIS
traceability systems
• Standards and protocols that ensure
traceability (NLIS) are maintained and
continue to ensure industry performance
standards are met.
MLA, CCA
Imperative: Minimising the impact of endemic disease
Activities Key Performance Indicators Who
• Maintain and improve active
surveillance and management
of endemic disease through the
value chain
• Evidence of high and ongoing confidence
levels of key stakeholders (government,
industry and trading partners) in the integrity
of endemic disease surveillance systems.
MLA, AHA
• Improve the information throughout
the supply chain on endemic disease
issues to enhance decision-making
• Evidence that the National Animal Health
Information System and related reporting is
valued by local and international end users.
• Processors are providing valuable
information to producers on sub-clinical
diseases on their cattle sent for slaughter.
CCA, AHA
• Accelerate the application of proven
industry practice (R&D) for on-farm
disease management
• Evidence of year-on-year reduction in
the costs of endemic disease to the
cattle industry.
MLA, AMPC
26. BEEF INDUSTRY
STRATEGIC PLAN 2020
24
1.4 Optimising Product Quality and Cost Efficiency
Cattle producers and other participants who took part in consultations for this plan spoke of how the future
for the Australian grassfed beef industry must involve a shift towards competing as the ‘best value chain in the
world’, reflecting consistent quality, fit for purpose products that are underpinned by robust integrity systems. The
supporting economic analysis conducted in formulating BISP2020 confirmed that significant benefits would be
generated if businesses improve collaboration across the value chain.
Achieving this vision will require a fundamental shift in mindset and practices by industry participants and
institutions towards ‘value chains’ rather than ‘supply chains’. It means incorporating the needs of consumers at
every step from farm gate through to dinner plate.
Australian beef businesses are moving to implement value chain approaches to meet consumer demand for quality
beef that is ‘fit for purpose’. The challenge for leaders is to broaden and accelerate value chain collaboration across
the industry. It will represent a major change for many industry participants and require strong leadership at all levels
to succeed.
The flows of relevant, timely information up and down the value chain are vital to informed decision-making by all
businesses. It is an area where modern technology systems should and need to support data and knowledge sharing.
Imperative: Improving quality and compliance via enhanced value chain information
Activities Key Performance Indicators Who
• Identify and implement
improvements to the meat
and livestock specification
language in line with end user
requirements
• Extent to which the industry accepts and
implements the recommendations of the White
Paper on beef language specifications.
• Quantified improvement in MSA graded carcasses
by 2 MSA index points by 2020 and 5 MSA index
points by 2030.
CCA
MLA
• Develop and promote the use
of tools that provide objective
measures of product attributes
• Annual increase in the number of cattle sold direct
to works being paid on a quality and yield basis
from a 2016 baseline.
MLA, CCA,
AMPC, AMIC
• Facilitate flows of information
that support timely decision-
making by businesses across
the value chain
• Evidence of a shared view by cattle producers and
beef processors on the quality of information flows.
• MSA results are used in all high value beef export
markets to underpin market development.
MLA, CCA,
AMPC, AMIC
• Test options and take action
to ensure compliance with
the Livestock Production
Assurance (LPA) Program
• Industry agreement reached for sanctions to be
imposed for non-compliance.
Peak Industry
Councils
Imperative: Improving efficiencies in regulation, infrastructure and logistics
Activities Key Performance Indicators Who
• Identify and prioritise government
and industry regulatory burden and
infrastructure or logistical blockages
to maximising returns across the
value chain
• Quantified value of the blockages removed
for producers and processor businesses.
• Evidence that the overall cost of the
regulatory burden is reducing by 2020.
MLA, AMPC,
Peak Industry
Councils
27. 25
Beef businesses are
moving to implement
value chain
approaches to meet
consumer demand
for quality beef that
is ‘fit for purpose’. The
challenge for leaders
is to accelerate value
chain collaboration
across the industry.
28. BEEF INDUSTRY
STRATEGIC PLAN 2020
26
2. High Priorities
The following priorities, imperatives and activities underpin the strength
and resilience of the industry. Actions with these priorities will involve
refining, improving and in some cases escalating industry efforts to create more value
by 2020.
2.1 Product and Systems Integrity
The success of the industry strategy to compete by consistently meeting consumer demand for premium quality
beef depends on the integrity and trust in the supporting systems across the value chain. These systems provide
the assurance and confidence for consumers that Australian beef products are safe, true to label and fit for purpose.
They also enable the flow of information that informs business decisions right across the value chain.
The industry has made substantial and sustained investments over decades to create the world-class systems that
now underpin product claims and earn the trust of customers and consumers in Australia and around the world.
These systems are an integral part of the value proposition to beef consumers.
Much has been achieved, but continuing to improve and strengthen industry systems is an area that offers long-
term benefits for all businesses involved in meeting consumer demand for Australian beef.
Imperative: Livestock and product assurance through integrated integrity systems
Activities Key Performance Indicators Who
• Continuous improvement of
beef and cattle integrity systems
in response to changing
customer requirements
• Satisfaction of value chain participants with
integrity systems is maintained and improved
against 2015 baseline.
• No market disruptions due to shortcomings in
industry integrity systems.
MLA, AMPC
• Transition livestock and product
integrity systems across the
value chain to be electronically
based and fully integrated
• Systems for transition are prioritised in terms of
value to the industry and ease of implementation.
• Integrity systems ranked as high priority are fully
integrated by 2020.
MLA, AMPC,
Peak Industry
Councils
29. PRIORITIES
FOR ACTION
27
2.2 Production Efficiency on Farms
The beef industry has invested substantially in research and other services to improve on-farm efficiency,
productivity and profitability. However, there remains large variability across farm enterprises in the adoption of
proven technologies that can increase efficiency.
The opportunities ahead are to: leverage existing knowledge that will improve the efficiency of different types of
farms; convey the commercial benefits of adoption; and consult with producers in prioritising new research.
Imperative: Decision support to improve farming businesses
Activities Key Performance Indicators Who
• Identify and promote the use of existing
knowledge with the highest immediate
benefit for beef production businesses
in different regions
• Increasing number of producers and
percentage of national production using
proven practices and technology.
MLA,
CCA, State
agriculture
departments
• Provide avenues for needs-based
producer learning and business
skill development
• Increasing levels of producer
participation and satisfaction with
business skill programs against
2016 base line.
MLA, CCA
• Partner and advocate for rapid
expansion of access to modern
communications and other technology
for businesses in rural Australia
• Extent to which regional beef industry
businesses have comparable access
to communications and technology as
metropolitan business.
CCA, NFF
Imperative: Increasing livestock productivity through new research
Activities Key Performance Indicators Who
• Prioritise and invest in new research
with highest potential for productivity
gains that will improve profitability
in northern and southern Australian
production systems
• Increasing productivity growth above
the baseline:
— Northern beef production of 0.5% by
2020 and 2.5% by 2030
— Southern beef production of 1.75% by
2020 and 7% by 2030.
MLA
30. BEEF INDUSTRY
STRATEGIC PLAN 2020
28
2.3 Efficiency and Value in Trade and Market Access
As a highly export-oriented industry, maintaining and expanding exports remains fundamental to future industry
income. There are significant opportunities to build on past and more recent progress with trade and market
access. New Free Trade Agreements in 2015 provide the basis to further increase the value of exports. However,
as economic barriers fall, the occurrence of technical barriers to trade is of increasing concern. Industry efforts will
need to expand to prevent and reduce technical barriers to trade.
Imperative: Reducing economic barriers to trade
Activities Key Performance Indicators Who
• Partner with the Australian
Government and the beef value
chain to defend and improve
market access
• Current favourable beef market access
is maintained.
• Increased access in developed and
developing high value markets.
MLA, AMPC,
Australian
Government
Imperative: Reducing technical barriers to trade
Activities Key Performance Indicators Who
• Establish a collaborative
approach with government and
the beef value chain to prioritise
and take effective action to
reduce technical barriers
• Extent to which the total cost of technical
barriers to trade for beef has reduced by 2020,
compared with a baseline established by
independent evaluation.
• A strategic and collaborative approach is
implemented to the satisfaction of beef value
chain participants.
MLA, AMPC,
Australian
Government
31. 29
As a highly export-
orientated industry,
maintaining and
expanding beef
exports remains
fundamental to future
industry income.
32. BEEF INDUSTRY
STRATEGIC PLAN 2020
30
3. Medium Priorities
The following priorities, imperatives and activities are important to the industry and
action will largely involve continuous improvement through to 2020 and beyond.
3.1 Stewardship of Environmental Resources
The grassfed beef industry has a strong record for sustainably managing the natural resources it uses. Stewardship
of the environment will continue to be important for productive use of land in the long-term and to meet community
expectations. Sustainability is also a potentially valuable attribute for differentiated beef products.
Imperative: Minimise beef industry impact on the environment
Activities Key Performance Indicators Who
• Collect evidence of national
beef industry environmental
performance and promote proven
practices on-farm
• Evidence of improvement in environmental
performance against industry 2015 baseline.
• Increasing percentage of production where
proven practices are applied to improve
environmental performance.
MLA, CCA
• Invest in R&D and accelerate
on-farm use of technologies and
management practices to reduce
greenhouse gas emissions
• Evidence of increased use of technologies
and management practices that reduce
greenhouse gas emissions without loss to on-
farm productivity.
Imperative: Adapting to climate variability
Activities Key Performance Indicators Who
• Invest in better forecasting and
information sharing systems to
inform on-farm decision-making
and industry strategies
• Evidence of improved forecasting and
information sharing being used for on-
farm decision-making and industry
strategic planning.
MLA, Peak
Industry
Councils
Imperative: Sustainable management of the natural resource base
Activities Key Performance Indicators Who
• Accelerate the application of
proven practices in managing the
impact of feral animals and invasive
weeds in cattle production systems
• R&D to result in savings in livestock industry
costs due to weeds and feral animals of at
least $50m by 2020 and $150m by 2030.
MLA
• Expand industry engagement and
participation with local initiatives to
achieve better NRM outcomes
• Increasing number of cattle producers aligned
with NRM bodies as part of value chains of
sustainably produced branded products.
MLA
33. PRIORITIES
FOR ACTION
31
3.2 Market and Promote Australian Beef – Domestic Market
Imperative: Marketing and promotion – domestic market
Activities Key Performance Indicators Who
• Foster the environment for
Australian beef brands to prosper
in the domestic market
• Evidence that industry marketing efforts are
providing a return to livestock producers of
$2.50 for every dollar of expenditure.
• Increasing number of consumers who identify
with a specific branded product.
MLA
• Work with retailers and the food
service industry to maintain
market share of Australian beef
compared with other proteins
• Market share maintained over 2015 baseline.
3.3 Beef in a Healthy Diet
Beef remains an essential part of a healthy and balanced diet. It is important to maintain awareness about the
nutritional attributes of beef and the industry must continue to provide objective and accessible information
for consumers.
Imperative: Position beef as a preferred component in a healthy diet
Activities Key Performance Indicators Who
• Provide health professionals and
the wider community with access to
objective information on the nutritional
attributes of beef in a balanced diet
• Evidence of maintained or increased
consumer awareness of the importance
of beef within a balanced diet from a
2015 baseline.
MLA
• Anticipate issues that could erode public
confidence in beef as a part of a healthy
diet and respond with objective and
strategic information campaigns
• Government policy and health
professionals continue to support
the inclusion of beef in a healthy
and balanced diet and in Australian
Dietary Guidelines.
MLA
34. 32
The success of the
industry strategy
to compete by
consistently meeting
consumer demand
for premium quality
beef depends on the
integrity and trust in
the supporting systems
across the value chain.
35. 33
MONITORING, EVALUATION
& REPORTING
MONITORING, EVALUATION
& REPORTING
An important focus of BISP2020 is the need for accurate and timely monitoring, evaluation and reporting (MER) on
progress achieved on the highest priority activities. This is essential not only to ensure transparency and accountability,
but also to provide a mechanism to identify and rectify areas of under-performance or under-investment. One of the first
tasks will be investing early to ensure that the industry has established robust baselines across the Key Performance
Indicators so that measurement and performance evaluation can be conducted over time.
Monitoring will be particularly important to help identify where strategies and activities should be adapted in
response to learning and shifts in the industry operating environments. MER results need to be publicly accessible to
levy payers, other investors and industry stakeholders as part of good practice in transparency and accountability.
As such, MLA and CCA should provide a BISP2020 scorecard report at their annual general meetings across the
term of the strategy. A yearly scorecard would reveal:
• The extent to which resources and efforts have been allocated to the Top Priority activities and the progress
made with Top Priority activities and KPIs; and
• Highlights of progress made with all other priority activities and KPIs.
CCA will work with RMAC and other service bodies to ensure integrated reporting cycles and standards. This is
important to ensure the strategic direction of MISP2020 and BISP2020 remain relevant and inline with industry,
consumer and community expectations.
Monitoring,
Evaluation &
Reporting
Internal Portfolio
Review
Consultation
& Realignment
BISP
Performance
Review
Report Card
to Industry
36. BEEF INDUSTRY
STRATEGIC PLAN 2020
34
GLOSSARY
AHA Animal Health Australia
AMIC Australian Meat Industry Council
AMPC Australian Meat Processor Corporation
BISP Beef Industry Strategic Plan
BCR Benefit Cost Ratio
CCA Cattle Council of Australia
CWT Carcase weight
FTA Free Trade Agreement
KPIs Key Performance Indicators
LPA Livestock Production Assurance
MER Monitoring, Evaluation and Reporting
MISP Meat Industry Strategic Plan
MLA Meat and Livestock Australia
MSA Meat Standards Australia
NFF National Farmers Federation
NLIS National Livestock Identification Scheme
NRM Natural Resource Management
NRS National Residue Service
R&D Research and Development
RMAC Red Meat Advisory Council
SWT Shipped Weight
37. 35
APPENDIX 1: BENEFIT COST RATIOS
AND NET BENEFITS TO 2020 AND 2030
APPENDIX 1:
BENEFIT COST RATIOS AND
NET BENEFITS TO 2020 AND 2030
Benefit Cost Ratios a
and Total Expected Benefits to Net Income b
by Pillar, Priority and Imperative for BISP-2020
Pillar
and
Priority
Imperative 2020 Expected
Net Income
Benefits to
2020 ($m)
2030 Expected
Net Income
Benefits to
2030 ($m)
Pillar 1: Consumer and community support
1.1 .1 Continuous improvement of animal welfare 11.6 350 30.7 2208
1.1.2 Minimising risk and impact of
emergency disease
15.7 136 15.8 326
1.1.3 Minimising the impact of endemic disease 1.5 13 5.1 103
1.1 Welfare of the animals within our care 10.6 498 23.3 2637
1.2.1 Minimising industry impact on
the environment
4.7 22 15.3 175
1.2.2 Sustainable management of the natural
resource base
0.3 1 4.9 70
1.2.3 Adapting to climate variability 0.7 8 5.7 150
1.2 Stewardship of our environmental resources 1.5 31 7.6 395
1.3 Red meat in a nutritious and healthy diet 1.2 13 2.7 69
Total Pillar 1 6.8 543 16.3 3102
Pillar 2: Market Growth and Diversification
2.1.1 Reducing economic barriers to trade 4.0 58 17.5 600
2.1.2 Reducing technical barriers to trade 2.9 42 6.2 220
2.1 Trade and market access 3.4 100 11.8 820
2.2.1 Marketing and promotion—
developing export markets
5.9 389 5.9 933
2.2.2 Marketing and promotion—
developed export markets
2.9 123 2.9 294
2.2.3 Marketing and promotion —domestic market 1.3 26 1.3 63
2.2 Marketing and promoting Australian red meat
and livestock
4.2 538 4.2 1290
Total Pillar 2 4.0 638 5.6 2110
38. BEEF INDUSTRY
STRATEGIC PLAN 2020
36
Pillar
and
Priority
Imperative 2020 Expected
Net Income
Benefits to
2020 ($m)
2030 Expected
Net Income
Benefits to
2030 ($m)
Pillar 3: Supply Chain Efficiency and Integrity
3.1.1 Improving quality and compliance via
enhanced supply chain information
2.1 170 7.4 1397
3.1.2 Improving efficiencies in regulation,
infrastructure and logistics
2.2 12 5.4 71
3.1 Optimising product quality and cost efficiency 2.1 182 7.2 1468
3.2.1 Livestock and product assurance through
integrated integrity systems
2.2 159 6.7 1169
3.2 Guaranteeing product and systems integrity 2.2 159 6.7 1169
Total Pillar 3 2.2 341 7.0 2637
Pillar 4: Productivity and profitability
4.1.1 Decision support for the farming system 5.4 70 9.2 286
4.1.2 On-farm productivity research 2.3 77 7.7 633
4.1 Production efficiency in farms and feedlots 3.1 148 8.1 919
4.2 Processing productivity 4.2 79 10.3 462
4.3 Live export productivity 0.4 1 1.0 6
Total Pillar 4 3.3 228 8.5 1387
BISP-2020 3.8 1749 8.3 9235
a Calculated as the expected present value of benefits, based on net industry income and costs from 2015-16 to
2029-30 in 2014-15 dollars using a real rate of return of 5 per cent.
b Net industry income of all beef industry sectors including processing.
